OT: Auto Lease

[JMORC2003]

Getting ready to lease a new car, how does one know if it's a good price? I absolutely hate the back and back song and dance of leasing/buying, but I also don't want to get taken to the cleaners with my monthly payments. I've heard about the 1% rule (monthly payment should be as close to 1% as possible to the sticker price), but don't know if that's true.

I stopped by a dealership yesterday, and the starting price he gave me was $110 more per month than even the build & price on the manufacturer's website. What a joke.

I don't put any money down, for every grand you put down they just lower the monthly by $28 (1000 / 36 months). I figure I turn the car in early, I don't get that grand back.

Not asking whether I should lease or finance (I have my reasons for leasing), just how to I know if i'm getting a good deal.

 

[anvilofstars]

There are guys out there that will get you a good deal and just charge you like a 500$ fee. If you aren’t sure, I’d just use a service like that. Better to just pay that and if you save at least 25$ a month, the service was well worth it.

 

[T2Kplus20]

Getting ready to lease a new car, how does one know if it's a good price? I absolutely hate the back and back song and dance of leasing/buying, but I also don't want to get taken to the cleaners with my monthly payments. I've heard about the 1% rule (monthly payment should be as close to 1% as possible to the sticker price), but don't know if that's true.

I stopped by a dealership yesterday, and the starting price he gave me was $110 more per month than even the build & price on the manufacturer's website. What a joke.

I don't put any money down, for every grand you put down they just lower the monthly by $28 (1000 / 36 months). I figure I turn the car in early, I don't get that grand back.

Not asking whether I should lease or finance (I have my reasons for leasing), just how to I know if i'm getting a good deal.

Leases are never a good deal.

 

[ClassOf02]

3 factors dictate the monthly lease payment. Selling price (can be negotiated as if you’re buying), residual value (less negotiable), and money factor (basically an interest rate). Selling prices are still high due to low inventory. Learn how a lease is calculated, build a spreadsheet, and shop around.

 

[RUScrew85]

Leases are never a good deal.

Some say spending money on a depreciating asset is a bad idea too. But ya needs a car.

 

[T2Kplus20]

Some say spending money on a depreciating asset is a bad idea too. But ya needs a car.

Not if you keep the car long enough. Owning always pays off financially.

 

[yesrutgers01]

3 factors dictate the monthly lease payment. Selling price (can be negotiated as if you’re buying), residual value (less negotiable), and money factor (basically an interest rate). Selling prices are still high due to low inventory. Learn how a lease is calculated, build a spreadsheet, and shop around.

I hate to say it since I was in the business of selling cars for a while but, I never tell them I am leasing first. I get my best sale price on the vehicle(not payment) and then have them work the lease number based on the price I negotiated.
And very hard to answer your question or tge 1% rule- how many months? Miles?
And as someone else pointed out, residual value is a huge factor.

It’s funny, I used to always purchase and normally got 10+ years and a couple hundred thousand miles. But, you have to put a large chunk down and your payments are high.
But for me- I used to put 30-40k mikes on per year. Now that I am always less than 12k miles- closer to 10k- have gone to leasing.
I usually put maintenance on it as well just for convenience. It has just made life easier and never have to worry about repairs anymore.

 

[tom1944]

My parents started leasing cars once they hit 70. Took very low mileage and leased for 2 or 3 years, it was inexpensive and they never paid for any repairs, oil changes or tires.

They will hit 90 soon and are down to 1 car.

 

[RUScrew85]

I hate to say it since I was in the business of selling cars for a while but, I never tell them I am leasing first. I get my best sale price on the vehicle(not payment) and then have them work the lease number based on the price I negotiated.
And very hard to answer your question or tge 1% rule- how many months? Miles?
And as someone else pointed out, residual value is a huge factor.

It’s funny, I used to always purchase and normally got 10+ years and a couple hundred thousand miles. But, you have to put a large chunk down and your payments are high.
But for me- I used to put 30-40k mikes on per year. Now that I am always less than 12k miles- closer to 10k- have gone to leasing.
I usually put maintenance on it as well just for convenience. It has just made life easier and never have to worry about repairs anymore.

Sheeeeit. My 2018 F150 has just less than 20K miles. Had it since Aug 2017.

 

[yesrutgers01]

Sheeeeit. My 2018 F150 has just less than 20K miles. Had it since Aug 2017.

Yeah- I have been in some sort of sales or national management role for years and pre Covid- a lot of client visits. And usually had super long commutes as well.
And then there were the Rutgers years and all the football trips or back and forth to Rutgers.
So, I also had to be careful of the car I purchased as well. I went back to back with a Lexus - 300k mikes and a Toyota Sequoia 250k mikes.

 

[RUaMoose]

Leases are never a good deal.

I always buy used from a private owner and pay cash. I write 0 on sale price on the title so I pay no sales tax. Bought my 2015 Rogue about 8 months ago. Had 74k on it (79k now). Paid 11k

 

[RU4Real]

Sheeeeit. My 2018 F150 has just less than 20K miles. Had it since Aug 2017.

Cuz it gets 4 miles to the gallon, right?

 

[greenknight]

I hate to say it since I was in the business of selling cars for a while but, I never tell them I am leasing first. I get my best sale price on the vehicle(not payment) and then have them work the lease number based on the price I negotiated.
And very hard to answer your question or tge 1% rule- how many months? Miles?
And as someone else pointed out, residual value is a huge factor.

It’s funny, I used to always purchase and normally got 10+ years and a couple hundred thousand miles. But, you have to put a large chunk down and your payments are high.
But for me- I used to put 30-40k mikes on per year. Now that I am always less than 12k miles- closer to 10k- have gone to leasing.
I usually put maintenance on it as well just for convenience. It has just made life easier and never have to worry about repairs anymore.

100% right negotiate the price of cat before you lease. Leasing has its positives you are always getting a new car every 3 yrs and generally dont have to worry about wear & tear.
As long as you have no problem paying $300-600 a month depending on what you are leasing

 

[T2Kplus20]

100% right negotiate the price of cat before you lease. Leasing has its positives you are always getting a new car every 3 yrs and generally dont have to worry about wear & tear.
As long as you have no problem paying $300-600 a month depending on what you are leasing

And can adhere to the mileage limitations.

 

[yesrutgers01]

And can adhere to the mileage limitations.

That is always the key. We used to always have one purchase and one lease plus a summer car- so easy to do.
One of the new problems we have is that my wife never has to drive for work, we have no kids going to school or sporting events etc, so, she maybe drives 3k a year.
What are you going to do with that? Almost forced me to buy her a car but she better like what she gets for the next 15 years lol.

 

[WasatRutgers]

I have used this process several times (because otherwise, you don’t know whether it’s a good deal):

- go online and find 3-4 dealers in your area that have the car in inventory that you want
- call one and ask for the internet manager (it may be listed on the website)
- tell them you want their best “out the door” monthly price based on parameters (xx months, how much out of pocket—maybe 0 to $2000, miles per year)
- tell them you’re calling 3 or 4 dealers with the car in stock, and whoever gives the best price will get the business (you could also throw in that if the first one is only beaten by a few dollars, they will get the business for having a good price out of the gate)
- call the other 3 but don’t say the prices you’ve received
- get the best two to play off each other (one will usually tap out)
- when you eventually go to the dealer to pick up, be prepared to walk out if anything changes

This process usually takes any where from a half day to a day or so, but has been effective. I’ve done it on more than 5 cars over the years.

 

[Plum Street]

I have used this process several times (because otherwise, you don’t know whether it’s a good deal):

- go online and find 3-4 dealers in your area that have the car in inventory that you want
- call one and ask for the internet manager (it may be listed on the website)
- tell them you want their best “out the door” monthly price based on parameters (xx months, how much out of pocket—maybe 0 to $2000, miles per year)
- tell them you’re calling 3 or 4 dealers with the car in stock, and whoever gives the best price will get the business (you could also throw in that if the first one is only beaten by a few dollars, they will get the business for having a good price out of the gate)
- call the other 3 but don’t say the prices you’ve received
- get the best two to play off each other (one will usually tap out)
- when you eventually go to the dealer to pick up, be prepared to walk out if anything changes

This process usually takes any where from a half day to a day or so, but has been effective. I’ve done it on more than 5 cars over the years.

Seems like a good strategy. Have you ever used it purchasing ?

 

[WasatRutgers]

Seems like a good strategy. Have you ever used it purchasing ?

I can’t recall (meaning if so, it was 20+ years ago), but it should work. Just have to be clear on what costs are included. They try to throw in nonsense fees, so being clear on what those are and the “out the door” price are key.

 

[yesrutgers01]

I can’t recall (meaning if so, it was 20+ years ago), but it should work. Just have to be clear on what costs are included. They try to throw in nonsense fees, so being clear on what those are and the “out the door” price are key.

the trick that people have to be careful about with this method is that many times- they will agree to the price on the phone and then you get there and the car in "inventory" is no longer available. Or they straight out lie because the sales manager tells the person you are talking to, to just say anything to get you to walk in the door.
It's a BS tactic and most. car sales people hate it.

 

[bob-loblaw]

I have used this process several times (because otherwise, you don’t know whether it’s a good deal):

- go online and find 3-4 dealers in your area that have the car in inventory that you want
- call one and ask for the internet manager (it may be listed on the website)
- tell them you want their best “out the door” monthly price based on parameters (xx months, how much out of pocket—maybe 0 to $2000, miles per year)
- tell them you’re calling 3 or 4 dealers with the car in stock, and whoever gives the best price will get the business (you could also throw in that if the first one is only beaten by a few dollars, they will get the business for having a good price out of the gate)
- call the other 3 but don’t say the prices you’ve received
- get the best two to play off each other (one will usually tap out)
- when you eventually go to the dealer to pick up, be prepared to walk out if anything changes

This process usually takes any where from a half day to a day or so, but has been effective. I’ve done it on more than 5 cars over the years.

Unfort, a lot of places wont allow their BDC (Internet dept) to give "lowest prices" over the phone. They all want you in the door.

My move is based on a decade in working in dealerships. It sounds absurd, but follow along

Find the dealer w the car you want in stock. Also, find other dealerships near by with the same or very similar vehicle. Call and verify its in stock and make an appt to come see it. You've now brought more people into the mix who want to see your deal go through. The person who took your call will probably get a small bonus if you show up for your appt, and also make $$ if you buy a car.

Test drive the car and be sure to park it right in front of the dealership. In a perfect world, near the desk of your salesperson.

If you want the car, let your emotion show to your sales person. Negotiate a good price. When you have what you think is their best price, start having reservations on the price. Tell them you want to stop by a few more dealerships to see if they can beat the deal. At this point, the salesman will give you an absurdly low price to go shop around with. When you have this, never leave the lot!

The other dealerships will never be able to compete with the price you were given out the door, and when you go back to the original dealership they will come up with a litany of reasons why they can no longer meet that price. The rebate is no longer there, that vehicle has a deposit, you no longer qualify for X, etc. This process is called breaking your legs, and its a shitty old school technique a lot of sales managers still use.

But you never left the lot. You went outside and looked at the vehicle and decided you wanted to buy it right now.

Be prepared for the sales manager to be irate. The vehicle is right in the front. The rebates didnt change in 15 mins. You'll get the price you want, but get ready for them to try to f you in financing.

Independent of this strategy, people dont realize that the finance manager often pulls in more money for the dealership than the actual sales process. When people get in the finance "box" theyre often exhausted from negotiating and have a warm face in there ready to get them on their way. Unfort., this person will find any which way to tack on fees to you. Warrantees, higher interest rates, etc. Dont fall for it. Know your credit score. Know what rates are being given by the dealer lending companies.

Buying a car is a terrible experience. Carvana tried to reinvent the process, but theyre 12 - 18 mos from going belly up and flooding the used car market with vehicles

 

[yesrutgers01]

Unfort, a lot of places wont allow their BDC (Internet dept) to give "lowest prices" over the phone. They all want you in the door.

My move is based on a decade in working in dealerships. It sounds absurd, but follow along

Find the dealer w the car you want in stock. Also, find other dealerships near by with the same or very similar vehicle. Call and verify its in stock and make an appt to come see it. You've now brought more people into the mix who want to see your deal go through. The person who took your call will probably get a small bonus if you show up for your appt, and also make $$ if you buy a car.

Test drive the car and be sure to park it right in front of the dealership. In a perfect world, near the desk of your salesperson.

If you want the car, let your emotion show to your sales person. Negotiate a good price. When you have what you think is their best price, start having reservations on the price. Tell them you want to stop by a few more dealerships to see if they can beat the deal. At this point, the salesman will give you an absurdly low price to go shop around with. When you have this, never leave the lot!

The other dealerships will never be able to compete with the price you were given out the door, and when you go back to the original dealership they will come up with a litany of reasons why they can no longer meet that price. The rebate is no longer there, that vehicle has a deposit, you no longer qualify for X, etc. This process is called breaking your legs, and its a shitty old school technique a lot of sales managers still use.

But you never left the lot. You went outside and looked at the vehicle and decided you wanted to buy it right now.

Be prepared for the sales manager to be irate. The vehicle is right in the front. The rebates didnt change in 15 mins. You'll get the price you want, but get ready for them to try to f you in financing.

Independent of this strategy, people dont realize that the finance manager often pulls in more money for the dealership than the actual sales process. When people get in the finance "box" theyre often exhausted from negotiating and have a warm face in there ready to get them on their way. Unfort., this person will find any which way to tack on fees to you. Warrantees, higher interest rates, etc. Dont fall for it. Know your credit score. Know what rates are being given by the dealer lending companies.

Buying a car is a terrible experience. Carvana tried to reinvent the process, but theyre 12 - 18 mos from going belly up and flooding the used car market with vehicles

Spot on advice- and the key is, as you said, never leave the dealership and keep the car in front of you. That way, they can’t pull the - someone else is on a test ride with it.
The sales managers will try every trick in the book. If lucky- you get a sales person only a car or two away from their bonus.
And 100% correct, tge real money is made at the finance desk- btw, have an idea of your credit ahead of time.
Also, know what extra coverage you want already as well.
I usually get tire and wheel- living here in the NE- good chance of it paying off. On a lease, I like a maintenance package.
Keep this in mind as well- you have already negotiated the price/payment before you walk into finance. I will always be ready to walk out the finance office unless they also give a deal on extra coverage. I have almost always gotten a 3 year maintenance when I lease at no additional cost.
And again- you get the best deal ALWAYS if you are ready to take the car home that day.
And there is a ton of truth to last Saturday of the month and last day of the month…

 

[365Poster24Seven]

Hire a broker let him do all the work for you. Funny how you asked for advice on leasing and the bored of life posters could not respect that and had to take the thread in another direction.

 

[yesrutgers01]

Hire a broker let him do all the work for you. Funny how you asked for advice on leasing and the bored of life posters could not respect that and had to take the thread in another direction.

I have seen a ton of great advice. Not sure how you missed it. And every thread will divert itself in different directions which actually help others who may be interested in the OP question as well. But pretty much everything in here should be helpful- I guess the last thing you can also do is check the leasing rate on any of the reputable car websites out there. The beauty of this is that you can do this as you are sitting at the sales person's desk or when they make one of their trips into the sales manager. But the advice in this thread should put anyone into a good position.

 

[Plum Street]

Unfort, a lot of places wont allow their BDC (Internet dept) to give "lowest prices" over the phone. They all want you in the door.

My move is based on a decade in working in dealerships. It sounds absurd, but follow along

Find the dealer w the car you want in stock. Also, find other dealerships near by with the same or very similar vehicle. Call and verify its in stock and make an appt to come see it. You've now brought more people into the mix who want to see your deal go through. The person who took your call will probably get a small bonus if you show up for your appt, and also make $$ if you buy a car.

Test drive the car and be sure to park it right in front of the dealership. In a perfect world, near the desk of your salesperson.

If you want the car, let your emotion show to your sales person. Negotiate a good price. When you have what you think is their best price, start having reservations on the price. Tell them you want to stop by a few more dealerships to see if they can beat the deal. At this point, the salesman will give you an absurdly low price to go shop around with. When you have this, never leave the lot!

The other dealerships will never be able to compete with the price you were given out the door, and when you go back to the original dealership they will come up with a litany of reasons why they can no longer meet that price. The rebate is no longer there, that vehicle has a deposit, you no longer qualify for X, etc. This process is called breaking your legs, and its a shitty old school technique a lot of sales managers still use.

But you never left the lot. You went outside and looked at the vehicle and decided you wanted to buy it right now.

Be prepared for the sales manager to be irate. The vehicle is right in the front. The rebates didnt change in 15 mins. You'll get the price you want, but get ready for them to try to f you in financing.

Independent of this strategy, people dont realize that the finance manager often pulls in more money for the dealership than the actual sales process. When people get in the finance "box" theyre often exhausted from negotiating and have a warm face in there ready to get them on their way. Unfort., this person will find any which way to tack on fees to you. Warrantees, higher interest rates, etc. Dont fall for it. Know your credit score. Know what rates are being given by the dealer lending companies.

Buying a car is a terrible experience. Carvana tried to reinvent the process, but theyre 12 - 18 mos from going belly up and flooding the used car market with vehicles

Why “never leave the lot.” ? Does it change if you go across the street for Dunkin or something? Just wondering .

 

[WasatRutgers]

the trick that people have to be careful about with this method is that many times- they will agree to the price on the phone and then you get there and the car in "inventory" is no longer available. Or they straight out lie because the sales manager tells the person you are talking to, to just say anything to get you to walk in the door.
It's a BS tactic and most. car sales people hate it.

Never happened to me, and it’s been 7 or 8 times and many dealers. Advantage of my approach, besides good price, is not having to go into dealer first (except to test drive, but always leave saying that you’re testing other cars in the class). If they do try to screw around, you walk out and call the second best price place.

 

[yesrutgers01]

Never happened to me, and it’s been 7 or 8 times and many dealers. Advantage of my approach, besides good price, is not having to go into dealer first (except to test drive, but always leave saying that you’re testing other cars in the class). If they do try to screw around, you walk out and call the second best price place.

It works first shot if it works for them. it is that simple.
And you are exactly right and following what we are saying- be ready to leave their dealership. That is how you got your deals- they knew you were leaving. The trick is always to mean it.

 

[WasatRutgers]

Unfort, a lot of places wont allow their BDC (Internet dept) to give "lowest prices" over the phone. They all want you in the door.

My move is based on a decade in working in dealerships. It sounds absurd, but follow along

Find the dealer w the car you want in stock. Also, find other dealerships near by with the same or very similar vehicle. Call and verify its in stock and make an appt to come see it. You've now brought more people into the mix who want to see your deal go through. The person who took your call will probably get a small bonus if you show up for your appt, and also make $$ if you buy a car.

Test drive the car and be sure to park it right in front of the dealership. In a perfect world, near the desk of your salesperson.

If you want the car, let your emotion show to your sales person. Negotiate a good price. When you have what you think is their best price, start having reservations on the price. Tell them you want to stop by a few more dealerships to see if they can beat the deal. At this point, the salesman will give you an absurdly low price to go shop around with. When you have this, never leave the lot!

The other dealerships will never be able to compete with the price you were given out the door, and when you go back to the original dealership they will come up with a litany of reasons why they can no longer meet that price. The rebate is no longer there, that vehicle has a deposit, you no longer qualify for X, etc. This process is called breaking your legs, and its a shitty old school technique a lot of sales managers still use.

But you never left the lot. You went outside and looked at the vehicle and decided you wanted to buy it right now.

Be prepared for the sales manager to be irate. The vehicle is right in the front. The rebates didnt change in 15 mins. You'll get the price you want, but get ready for them to try to f you in financing.

Independent of this strategy, people dont realize that the finance manager often pulls in more money for the dealership than the actual sales process. When people get in the finance "box" theyre often exhausted from negotiating and have a warm face in there ready to get them on their way. Unfort., this person will find any which way to tack on fees to you. Warrantees, higher interest rates, etc. Dont fall for it. Know your credit score. Know what rates are being given by the dealer lending companies.

Buying a car is a terrible experience. Carvana tried to reinvent the process, but theyre 12 - 18 mos from going belly up and flooding the used car market with vehicles

When did you last work in dealership?

 

[MADHAT1]

check if you qualify to have the lease tax deductible.
If you're self emoployed or a business owner who uses that leased vehicle to drive to work , you might be able to.
But check before you lease anything thinking that might apply, I could be mistaken about vehicle lease being a write off

 

[WasatRutgers]

It works first shot if it works for them. it is that simple.
And you are exactly right and following what we are saying- be ready to leave their dealership. That is how you got your deals- they knew you were leaving. The trick is always to mean it.

Agreed. I never had to. Maybe it was because I was upfront about my process. The closest I had to weirdness was going to a dealership to buy a car at the end of a lease. They were charging a doc fee of like 450. On the spot, I called the lease financing company asking if I could pay them directly and they agreed, and I walked out.

 

[yesrutgers01]

Why “never leave the lot.” ? Does it change if you go across the street for Dunkin or something? Just wondering .

you leave sight of the car, you sight of your deal. You go to DD- Sales Manage berates the sales person for failing(they provide coffee if you need it)...They do not believe you want to close the deal today and they are not going to give you the best price because they feel you are not serious.
At all times- you need to be the one that is not only in control, but knowledgeable and fair. SM will always doubt you if it seems you are not ready to make the deal- "F-them, is the most common term a Sales Manager uses"

I was in the sales role- I know exactly what is going on behind the scenes - only time a sales person is not butt ra-ed by the sales manager is if they are the top performer or you are a returning 3x customer. By the time you are back- that sales person is working with someone else.

 

[WasatRutgers]

It works first shot if it works for them. it is that simple.
And you are exactly right and following what we are saying- be ready to leave their dealership. That is how you got your deals- they knew you were leaving. The trick is always to mean it.

Maybe I was lucky (hard to believe on 7 or 8 times and almost as many dealerships) and maybe the timing was right (like year end/end of month), but I never had to even threaten to leave. I’m really not that assertive of a person and definitely not prickish (although some of my comments could be taken that way on this board), just straightforward and demonstrating that I know the details.

 

[yesrutgers01]

Agreed. I never had to. Maybe it was because I was upfront about my process. The closest I had to weirdness was going to a dealership to buy a car at the end of a lease. They were charging a doc fee of like 450. On the spot, I called the lease financing company asking if I could pay them directly and they agreed, and I walked out.

That is the best way- car sales is about win/win and everyone happy. You do research- get the deal you are very happy about, they make a fair deal and all walk away. This is when most dealerships will work with you and "hope" finance can get something else lol

But in all seriousness- you did nail it, you told them upfront, and they respected it. It actually works even in buying cars. It is always the dicks that want you under priced, work you for 3 hours, walk out, go to 3 other dealers and then call you to match a price...and next thing you know, they call again in 3 weeks to see if you can do better.

 

[yesrutgers01]

Maybe I was lucky (hard to believe on 7 or 8 times and almost as many dealerships) and maybe the timing was right (like year end/end of month), but I never had to even threaten to leave. I’m really not that assertive of a person and definitely not prickish (although some of my comments could be taken that way on this board), just straightforward and demonstrating that I know the details.

to add to what you said- I do the same- research- call a few places and get good deals based on what I researched. Make an appointment and tell them upfront if this changes, I am walking. "which has happened" - and then understand that the dealership that respected it, will also try to get something on the backend. I call them out on it.


BTW- for some that do not know- Sales manager and Finance will try to do some completely BS crap- I have seen them tell someone with a 775 credit that they came in low and do not qualify for the financing they were given at the sales desk. People that do not keep track of this, are often times just so happy with the car they agree to a finance charge a good 2 pts over what they should have gotten. Finance manager may see one thing in your past and use that to tell you they need to bump you.
Go in with your own financing if you can.

 

[bob-loblaw]

Spot on advice- and the key is, as you said, never leave the dealership and keep the car in front of you. That way, they can’t pull the - someone else is on a test ride with it.
The sales managers will try every trick in the book. If lucky- you get a sales person only a car or two away from their bonus.
And 100% correct, tge real money is made at the finance desk- btw, have an idea of your credit ahead of time.
Also, know what extra coverage you want already as well.
I usually get tire and wheel- living here in the NE- good chance of it paying off. On a lease, I like a maintenance package.
Keep this in mind as well- you have already negotiated the price/payment before you walk into finance. I will always be ready to walk out the finance office unless they also give a deal on extra coverage. I have almost always gotten a 3 year maintenance when I lease at no additional cost.
And again- you get the best deal ALWAYS if you are ready to take the car home that day.
And there is a ton of truth to last Saturday of the month and last day of the month…

Spot on to all of this!

Why “never leave the lot.” ? Does it change if you go across the street for Dunkin or something? Just wondering .

Yes Rutgers answered it above, but you greatly decrease the odds of them trying to pull something over on you.

BTW- for some that do not know- Sales manager and Finance will try to do some completely BS crap- I have seen them tell someone with a 775 credit that they came in low and do not qualify for the financing they were given at the sales desk. People that do not keep track of this, are often times just so happy with the car they agree to a finance charge a good 2 pts over what they should have gotten. Finance manager may see one thing in your past and use that to tell you they need to bump you.
Go in with your own financing if you can.

It saddens me how FEW people realize this. Everyone thinks the negotiations are over and youre just "going to sign the papers," but thats just the beginning.

The internet is your friend. Let's say you're looking at a f150. On the vehicle page you will see all sorts of things about calculating your payment, financing, etc. A lot of these will show what the current rates are when financing through the OEM credit provider. Know ahead of time, so that way Mr finance guy doest try to drop you into a higher rate that the dealership is making money on.

Side note----If you have to put in personal info online to get the rates, I highly recommend you use a burner email account that you use for signups. You will get accosted with email for years.

Also, dealerships dont like people who pay with cash. They make their money financing. And make money financing with the OEM. Ford dealer, using Ford Motor Credit, etc. Often times there's rebates to the consumer only available only if you finance through the OEM.

 

[mikebal9]

100% right negotiate the price of cat before you lease. Leasing has its positives you are always getting a new car every 3 yrs and generally dont have to worry about wear & tear.
As long as you have no problem paying $300-600 a month depending on what you are leasing

I lease and absolutely love it vs owning. I'd rather have a steady payment that can be simply budgeted than repairs that pop up out of nowhere. I'm not a great saver, so I'd rather know exactly what I'll pay for the length of the lease. Plus, having a new car every three years is great.

 

[RUaMoose]

And can adhere to the mileage limitations.

I always laugh about how they charge you for going over the mileage limit because, presumably, the vehicle is worth less due to the higher mileage. Yet if you are well under the mileage threshold, presumably the car is worth more so shouldn’t you get a credit ? Of course not. F**king scam.

 

[Racinejake]

Getting ready to lease a new car, how does one know if it's a good price? I absolutely hate the back and back song and dance of leasing/buying, but I also don't want to get taken to the cleaners with my monthly payments. I've heard about the 1% rule (monthly payment should be as close to 1% as possible to the sticker price), but don't know if that's true.

I stopped by a dealership yesterday, and the starting price he gave me was $110 more per month than even the build & price on the manufacturer's website. What a joke.

I don't put any money down, for every grand you put down they just lower the monthly by $28 (1000 / 36 months). I figure I turn the car in early, I don't get that grand back.

Not asking whether I should lease or finance (I have my reasons for leasing), just how to I know if i'm getting a good deal.

Your first stop should be to leasehackr.com. You can read up on all the factors that impact the price of a lease such as sales price, money factor, residual value, MSDs, etc. Some items are negotiable and others are not. The first rule most people will tell you is to do all your negotiating over email (as opposed to in person) so you've agreed to all the specifics ahead of time and you just go to the dealership to sign the papers/get the keys. On this site, you will also see brokers that have pre-negotiated deals with various dealers on certain vehicles, many of which are based out of the NE. I've used the tactics on this site to lease our last two vehicles with incredible results. Good luck with your search.

 

[yesrutgers01]

Spot on to all of this!

Yes Rutgers answered it above, but you greatly decrease the odds of them trying to pull something over on you.

It saddens me how FEW people realize this. Everyone thinks the negotiations are over and youre just "going to sign the papers," but thats just the beginning.

The internet is your friend. Let's say you're looking at a f150. On the vehicle page you will see all sorts of things about calculating your payment, financing, etc. A lot of these will show what the current rates are when financing through the OEM credit provider. Know ahead of time, so that way Mr finance guy doest try to drop you into a higher rate that the dealership is making money on.

Side note----If you have to put in personal info online to get the rates, I highly recommend you use a burner email account that you use for signups. You will get accosted with email for years.

Also, dealerships dont like people who pay with cash. They make their money financing. And make money financing with the OEM. Ford dealer, using Ford Motor Credit, etc. Often times there's rebates to the consumer only available only if you finance through the OEM.

Cash is king is not true in cars anymore.

You hit on something that so many people just don’t get- I used to get people all the time that used the paying cash to try to get a better deal. Lol
We made our real money on finance rates. Do you really think that 500 over invoice pays tge bills.

I had a guy try to get a car for 1000 under invoice, he then went to the @im paying cash” - I still told him no can do as we were losing too much money- his counter was- I’ll by 2 cars at 1200 under invoice, CASH, if you make this deal!
I had to just laugh at him. He really did not understand that losing big money with no finance on 2 cars is worst that 1 car. We would have considered it if he was financing.

 

[imoapie]

Cash is king is not true in cars anymore.

You hit on something that so many people just don’t get- I used to get people all the time that used the paying cash to try to get a better deal. Lol
We made our real money on finance rates. Do you really think that 500 over invoice pays tge bills.

I had a guy try to get a car for 1000 under invoice, he then went to the @im paying cash” - I still told him no can do as we were losing too much money- his counter was- I’ll by 2 cars at 1200 under invoice, CASH, if you make this deal!
I had to just laugh at him. He really did not understand that losing big money with no finance on 2 cars is worst that 1 car. We would have considered it if he was financing.

Is it as simple as sure I'll finance then payoff the next week?

 

[ClassOf02]

Cash is king is not true in cars anymore.

You hit on something that so many people just don’t get- I used to get people all the time that used the paying cash to try to get a better deal. Lol
We made our real money on finance rates. Do you really think that 500 over invoice pays tge bills.

I had a guy try to get a car for 1000 under invoice, he then went to the @im paying cash” - I still told him no can do as we were losing too much money- his counter was- I’ll by 2 cars at 1200 under invoice, CASH, if you make this deal!
I had to just laugh at him. He really did not understand that losing big money with no finance on 2 cars is worst that 1 car. We would have considered it if he was financing.

Kinda horseshite. A customer with the means to pay cash should get the same deal as a customer that wishes to finance.